| The
Ann Arbor Railroad, as now constituted, was sold to the Ann Arbor Acquisition
Corporation in October, 1988. Today, the Ann Arbor is a Class III rail carrier
providing rail service between Ann Arbor, Michigan and Toledo, Ohio. Ann
Arbor interchanges traffic with three (3) Class I railroads in Toledo,
Ohio; namely CSX, Norfolk Southern and Canadian National Railway; with one
(1) Regional railroad in Toledo, Ohio; Wheeling and Lake Erie. In
addition, Ann Arbor has interchange connections with Norfolk Southern at
Milan, MI, the Tuscola & Saginaw Bay Railway Co., Inc. (TSBY)
and Norfolk Southern at Ann Arbor, MI, and the Indiana & Ohio Rail System (I &O) at Diann,
MI.
The Ann Arbor
started operations in 1878 providing rail service between Frankfort, Michigan
and Toledo, Ohio. In addition to its rail operation, the Ann Arbor owned
and operated car ferries between Michigan and Wisconsin.
In 1892 Ann Arbor
No. 1 made its maiden voyage across Lake Michigan and was the first railroad
company to provide transportation services across Lake Michigan. The Wabash
Railroad controlled the Ann Arbor (through stock
ownership) from 1925 to 1963. In 1963 the
Detroit, Toledo and Ironton Railroad Company acquired control of the Ann Arbor
Railroad,
including car ferries, from the Wabash Railroad. Ann Arbor entered into
reorganization in 1974 and was one of the seven northeastern railroads covered
by the Railroad Revitalization and Regulatory Reform Act of 1976. Because
of its importance, the portion of the Ann Arbor Rail system that remains
today --- between Ann Arbor, Michigan and Toledo, Ohio --- was included
in the final system plan that created Conrail. However, the State of Michigan
wanted to retain the entire Ann Arbor Railroad system intact for the benefit
of shippers and communities. To accomplish this goal, the State of Michigan
purchased the portion of the Ann Arbor Railroad between Ann Arbor and Toledo
in March 1976 and the remainder of the Ann Arbor Railroad, including the
car ferries, in 1980. Conrail operated the entire line for the State of Michigan
from April 1976 through September 1977. On October 1, 1977, Michigan Interstate
Railway Company ("Michigan Interstate") was designated operator of the line.
The car ferry operation was discontinued in April 1982. Subsequently, in
1983, Michigan Interstate filed for reorganization. The trustee for the estate
purchased the portion of the Ann Arbor Railroad between Ann Arbor and Toledo
in September 1985. The Ann Arbor Railroad as now constituted, was sold to
the Ann Arbor Acquisition Corporation in October 1988.
Under its new
ownership and management, the Ann Arbor Railroad has created one of the lowest
operating ratios in the United States. Ann Arbor Railroad is commonly referred
to as the "Crown Jewel" of the Regionals. |